Landstar Announces Increase to Stock Purchase Program and Special Dividend

Rhea-AI Summary

Landstar System, Inc. (NASDAQ-LSTR) announced an increase in its stock purchase program to 3,000,000 shares, allowing for the acquisition of an additional 1,900,826 shares. Additionally, a special one-time cash dividend of $2.00 per share was declared, payable on January 20, 2023, for stockholders of record as of January 6, 2023. The company reported purchasing 1,900,826 shares for approximately $286 million in the first three quarters of fiscal 2022 and returning $115.7 million in cash dividends during the same period, supported by a strong balance sheet with $228 million in cash and short-term investments.

Positive

• Increase in stock purchase program to 3,000,000 shares.
• Declaration of a special $2.00 cash dividend, enhancing shareholder returns.
• Strong balance sheet with $228 million in cash and short-term investments.

Negative

• None.

JACKSONVILLE, Fla., Dec. 07, 2022 (GLOBE NEWSWIRE) -- Landstar System, Inc. (NASDAQ-LSTR), a worldwide, asset-light provider of integrated transportation management solutions delivering safe, specialized transportation logistics services, announced that on December 6, 2022, its Board of Directors increased the number of shares of its common stock that the Company is authorized to purchase under its stock purchase program to 3,000,000. The increase to the share purchase program reflects a new authorization to purchase 1,900,826 shares of Landstar System common stock in addition to the remaining capacity under the existing authorization to purchase 1,099,174 shares.

The Company also announced that its Board has declared a special one-time cash dividend in the amount of $2.00 per share, payable on January 20, 2023, to stockholders of record as of the close of business on January 6, 2023.

“Landstar’s strong balance sheet and free cash flow generation enables us to continue to return value to our stockholders through a significant increase to our stock purchase program coupled with a special dividend,” said Landstar President and Chief Executive Officer Jim Gattoni. “As previously reported, the Company purchased a total of 1,900,826 shares of its common stock at an aggregate cost of approximately $286.0 million during the first three quarters of its 2022 fiscal year. The Company also returned $115.7 million to stockholders in the form of cash dividends paid on shares of its common stock during the 2022 fiscal year. As previously reported, as of September 24, 2022, the Company had $228 million in cash and short-term investments. The Company intends to continue to use its available free cash flow to purchase its stock under its stock purchase program."

About Landstar:
Landstar System, Inc., a Fortune 500 company, is a worldwide, technology-enabled, asset-light provider of integrated transportation management solutions delivering safe, specialized transportation services to a broad range of customers utilizing a network of agents, third-party capacity providers and employees. Landstar transportation services companies are certified to ISO 9001:2015 quality management system standards and RC14001:2015 environmental, health, safety and security management system standards. Landstar System, Inc. is headquartered in Jacksonville, Florida. Its common stock trades on The NASDAQ Stock Market® under the symbol LSTR.

Forward Looking Statements Disclaimer:
The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995. Statements contained in this press release that are not based on historical facts are “forward-looking statements”. This press release contains forward-looking statements, such as statements which relate to Landstar’s business objectives, plans, strategies and expectations. Terms such as “anticipates,” “believes,” “estimates,” “intention,” “expects,” “plans,” “predicts,” “may,” “should,” “could,” “will,” the negative thereof and similar expressions are intended to identify forward-looking statements. Such statements are by nature subject to uncertainties and risks, including but not limited to: the impact of the Russian conflict with Ukraine on the operations of certain independent commission sales agents, including the Company’s largest such agent by revenue in the 2021 fiscal year; the impact of the coronavirus (COVID-19) pandemic; an increase in the frequency or severity of accidents or other claims; unfavorable development of existing accident claims; dependence on third party insurance companies; dependence on independent commission sales agents; dependence on third party capacity providers; decreased demand for transportation services; U.S. trade relationships; substantial industry competition; disruptions or failures in the Company’s computer systems; cyber and other information security incidents; dependence on key vendors; changes in fuel taxes; status of independent contractors; regulatory and legislative changes; regulations focused on diesel emissions and other air quality matters; intellectual property; and other operational, financial or legal risks or uncertainties detailed in Landstar’s Form 10-K for the 2021 fiscal year, described in Item 1A Risk Factors, Landstar’s Form 10-Qs for the 2022 first and second fiscal quarters, described in Item 1A Risk Factors, and in other SEC filings from time to time. These risks and uncertainties could cause actual results or events to differ materially from historical results or those anticipated. Investors should not place undue reliance on such forward-looking statements, and the Company undertakes no obligation to publicly update or revise any forward-looking statements.

FAQ

When will Landstar's special dividend be paid?

The special dividend of $2.00 per share will be paid on January 20, 2023.

What is the total number of shares Landstar plans to purchase under its program?

Landstar has authorized the purchase of a total of 3,000,000 shares under its stock purchase program.

What was the amount paid in cash dividends by Landstar in fiscal 2022?

In fiscal 2022, Landstar returned $115.7 million to stockholders in the form of cash dividends.

What is the stock symbol for Landstar System?

The stock symbol for Landstar System, Inc. is LSTR.